Smaller charities wishing to use HMRC’s free software to file corporation tax returns may continue to file the supporting accounts in PDF format instead of iXBRL format for a transitional period, HMRC has announced.
From 1 April 2011 most company accounts and all computations will need to be filed in Inline eXtensible Business Reporting Language, an IT standard for financial reporting.
‘HMRC provides free software to submit company tax returns online, which is suitable for most small companies with less complex affairs. This software includes templates which ensure accounts and computations are submitted in iXBRL format,’ HMRC said.
‘However, HMRC recognises that the accounting principles by which smaller charities prepare accounts mean that the accounts template included in the free software provided by HMRC may not be suitable for them.
‘Until HMRC provides free software that is suitable for smaller charities, HMRC will continue to accept accounts from smaller charities in PDF format. Computations must be filed in iXBRL format but the free HMRC software should be suitable for these.’
A smaller charity for these purposes is one whose income, combined with that of any wholly owned subsidiaries, does not exceed £6.5 million.
Megan McInally, Policy Manager at the Charity Finance Directors' Group, told Tax Journal: ‘This is a transitional arrangement to provide some respite for smaller charities. HMRC has recognised that submitting accounts using the iXBRL software is likely to require substantial resource and difficulty, particularly to smaller charities.
‘However, we expect that many of our members will not fall in to the eligible income bracket. Some charities will have to outsource this work and may therefore incur additional cost in addition to their own time and effort.’
Smaller charities wishing to use HMRC’s free software to file corporation tax returns may continue to file the supporting accounts in PDF format instead of iXBRL format for a transitional period, HMRC has announced.
From 1 April 2011 most company accounts and all computations will need to be filed in Inline eXtensible Business Reporting Language, an IT standard for financial reporting.
‘HMRC provides free software to submit company tax returns online, which is suitable for most small companies with less complex affairs. This software includes templates which ensure accounts and computations are submitted in iXBRL format,’ HMRC said.
‘However, HMRC recognises that the accounting principles by which smaller charities prepare accounts mean that the accounts template included in the free software provided by HMRC may not be suitable for them.
‘Until HMRC provides free software that is suitable for smaller charities, HMRC will continue to accept accounts from smaller charities in PDF format. Computations must be filed in iXBRL format but the free HMRC software should be suitable for these.’
A smaller charity for these purposes is one whose income, combined with that of any wholly owned subsidiaries, does not exceed £6.5 million.
Megan McInally, Policy Manager at the Charity Finance Directors' Group, told Tax Journal: ‘This is a transitional arrangement to provide some respite for smaller charities. HMRC has recognised that submitting accounts using the iXBRL software is likely to require substantial resource and difficulty, particularly to smaller charities.
‘However, we expect that many of our members will not fall in to the eligible income bracket. Some charities will have to outsource this work and may therefore incur additional cost in addition to their own time and effort.’
